Sinopec and Tecnicas Reunidas Land $3.3 Billion Deal for Saudi NGL Facility Project
Sinopec and Tecnicas Reunidas Land $3.3 Billion Deal for Saudi NGL Facility Project

Sinopec and Tecnicas Reunidas Land $3.3 Billion Deal for Saudi NGL Facility Project

  • 23-Jan-2024 2:29 PM
  • Journalist: Nicholas Seifield

Saudi Aramco has recently granted a substantial contract exceeding $3.3 billion to a joint venture comprising China's Sinopec Engineering Group and Spain's Tecnicas Reunidas. This collaboration aims to spearhead the development of new natural gas liquids (NGL) fractionation facilities within Saudi Arabia, marking a significant stride in the region's energy infrastructure.

The contractual framework delineates two distinct engineering, procurement, and construction (EPC) contracts, paving the way for the realization of the Riyas NGL Fractionation Trains (Package 1) and Riyas NGL Common Facilities (Package 2). Package 2 encompasses a range of crucial components, including utilities, storage facilities, and export facilities, as highlighted in Tecnicas Reunidas' official statement on the matter.

The joint venture structure designates Sinopec as the majority shareholder, with a commanding 65 percent ownership, while Tecnicas Reunidas secures a substantial 35 percent stake in the collaboration. The Riyas NGL fractionation facility is earmarked to process an impressive 510,000 barrels per day (MBD) of NGLs, demonstrating its strategic significance within the broader energy landscape.

Under the framework of Package 1, the Riyas NGL fractionation facility will feature two trains, each processing 255 MBD. These trains are meticulously designed to incorporate essential components such as fractionation units, treatment facilities, dehydration units, and refrigeration units. This comprehensive approach underscores the commitment to maximizing the efficiency and capabilities of the NGL fractionation process.

Package 2, encompassing common facilities, is set to provide crucial elements such as feed and product surge storage, chemicals storage, and a spectrum of utilities. These utilities span steam and condensate recovery systems, utility water infrastructure, plant systems, instrument air and nitrogen systems, machinery cooling water, drainage systems, and flare systems. The holistic approach to common facilities ensures a robust and integrated support system for the overall NGL fractionation complex.

The projected timeline for the completion of this ambitious project is outlined at 46 months for Package 1 and 41 months for Package 2, as stated in the official release. This signifies a considerable commitment of resources and expertise to bring the Riyas NGL fractionation facilities to operational status within a defined timeframe.

In essence, this significant collaboration between Sinopec and Tecnicas Reunidas, under the aegis of Saudi Aramco, reflects a strategic alignment to fortify and expand the NGL infrastructure in Saudi Arabia. The scale and intricacy of the Riyas NGL fractionation project underscore its importance in meeting the evolving energy demands of the region.

As the project unfolds over the designated timeline, it is expected to not only contribute substantially to the energy landscape of Saudi Arabia but also serve as a testament to the collaborative capabilities of international entities. The joint venture's combined expertise, with Sinopec's majority ownership and Tecnicas Reunidas' complementary contributions, positions the project as a noteworthy endeavor in the global energy sector. The Riyas NGL fractionation facilities are poised to play a pivotal role in enhancing the region's capabilities in natural gas liquid processing and export, aligning with the broader goals of sustainable energy development.

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